Main reasons to start your Littleover lease extension

Top reasons for lease extension now:

Increase your lease and increase your Littleover property value

The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Littleover can extend the lease for an additional 90 years under statute. Please give careful consideration before delaying your Littleover lease extension. Putting off that expense now simply increases the amount you will eventually have to pay to extend the lease.

Littleover property with a lease extension has roughly the same value as a freehold

Leasehold residencies in Littleover with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.

Banks and Building Societies may decide not to finance a property with a short lease

Whether or not the lease is be regarded as a short lease varies by mortgage company, yet banks and building societies start to become concerned at around 75 years. This may be problematic when you come to market or remortgage your flat as it will be effectively unmortgageable. You might not have an immediate intention to sell but when you do your buyer must wait 2 years before being able to exercise the right to a an extension to the lease.

Get in touch with one of our Littleover lease extension solicitors or enfranchisement solicitors

Using our service gives you increased control over the value of your Littleover leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Littleover Lease Extension Case Summaries:

Seth, Littleover, Derbyshire,

Seth was the the leasehold owner of a studio flat in Littleover being marketed with a lease of fraction over 72 years left. Seth informally approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Seth to invoke his statutory right. Seth procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.

Littleover case:

In 2014 we were approached by Mrs G Petit who, having completed a first floor apartment in Littleover in July 2002. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Littleover with a long lease were in the region of £285,000. The average amount of ground rent was £55 billed annually. The lease came to a finish on 1 July 2106. Having 80 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.

Littleover case:

Mr and Mrs. B Allen acquired a first floor flat in Littleover in March 2004. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Littleover with 100 year plus lease were valued about £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out in 2086. Taking into account 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of costs.